Coinbase closed at $136.82, down 9.69 percent.
Despite the sharp daily decline, options flow revealed a notable institutional posture: a 2027 bull put spread worth $1.40 million in net credit, constructed by selling 130.0 puts and buying 115.0 puts. This long-dated structure dominated block activity and signaled confidence that Coinbase can stabilize above key lower support levels. The combination of elevated volatility, a below-1 call/put volume ratio, and a substantial short-put position points to sophisticated traders selling premium on downside strikes rather than chasing bearish momentum after the selloff.
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Options Indicators
Coinbase currently has an implied volatility of 77.37%, and with an IV percentile of 70.52%, current option volatility sits in the elevated range, indicating that options are priced expensively relative to Coinbase’s own recent history. The IV/HV ratio of 1.12 also suggests implied volatility is running modestly above realized volatility, meaning the market is assigning a premium to forward uncertainty rather than pricing options at a discount. The Call/Put volume ratio is 0.71.
Large Trades
A put spread executed for a net credit of $1.40 million was the standout large trade, built through selling the 130.0 puts and buying the 115.0 puts for the 2027-01-15 expiration. With both short and long puts included, this is a bullish put spread that collects premium upfront while defining downside risk, indicating the trader is positioning for COIN to remain above 130.0 or at least avoid a deep decline toward 115.0 by expiration. Given the reference stock price of 136.82, both strikes were out of the money at execution, which reinforces the view that this was a moderately bullish income-generating stance rather than an outright bearish hedge.
Overall, the large-trade flow leans bullish on COIN. The dominant structure was a credit put spread placed below the current stock price, and the additional sizeable sale of the 90.0 put also points to willingness to collect premium on downside strikes well below spot. Taken together, the block activity suggests institutional traders are expressing confidence that COIN can hold above key lower strike levels, with sentiment favoring stability to upside rather than preparing for an aggressive selloff.
Strategy Reference
For sellers seeking a lower assignment probability, the 90.0 put on a shorter-dated expiration remains an OTM strike well below spot that aligns with the observed premium-selling flow, while traders preferring defined risk can replicate the bullish thesis with a put credit spread such as selling the 125.0 put and buying the 110.0 put to reduce margin requirements.
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